How Do Consumers Make Choices
How Do Consumers Make Choices? When examining consumer spending and decision making from an economic standpoint, one must evaluate many different factors that contribute to the decisions consumers make. ... Orthodox economists believe in consumer sovereignty, in other words, that consumers have a direct impact and a decision making power over what the market sector will produce, while the producers compete for the consumer’s business. ... A consumer’s income is another large factor in the choices they make. Their income can serve as a boundary, limiting the choices available to a consumer. ... There are countless types of products and services available to consumers, and in most cases there are countless types or variations of each product. ... Orthodox economists believe that consumers arrive at their tastes and preferences unaided, on the other hand, the Heterodox school of thought challenges this last idea. ... They also believe that producers influence consumers by deciding what they can and will produce profitably. For example, even if demand from consumers exists for a certain type of product, like a high technology item, producers might not pursue attempting to manufacture the item, because it would not be profitable for them. The raw materials, or the technology available, might be too expensive or sub-par, therefore causing producers to not produce that item for consumers.